Saudi Arabia’s Bahri acquires new vessel

08 May 2013

Delivery follows fall in first quarter profits for shipping firm  

The National Shipping Company of Saudi Arabia (Bahri) has received the second ship of a six-vessel order from South Korea’s Hyundai Mipo Dockyard.

The original SR1.54bn ($400m) contract was signed with the firm in 2011.

The new ships are designed to carry general and project cargo, as well as roll-on/roll-off cargo. There are a further four general cargo vessels currently being constructed in South Korea, with delivery expected to take place during 2013 and the first half of 2014.

The delivery follows news that Bahri recorded reduced profits for the first quarter of 2013, compared with the beginning of last year. Net profit totalled SR144.5m ($38.5m), compared to the SR160.1m for the same period last year. This marks a decrease of 9.7 per cent. However, net profit increased when compared with the previous quarter’s profit of SR73m.  

According to Bahri’s chief executive officer, Saleh al-Jasser, the main reason for the decrease in the profit was due to lower than average rates for very large crude carriers (VLCC).  

The financial impact of the new delivery on company revenues will not become evident until the end of the second quarter of 2013.

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